A bill to recognize bitcoin as legal tender in Mexico has been put forth by senator Indira Kempis. The difficulties Mexican citizens encounter when attempting to access financial products and education serve as the basis for the bill’s action. The Central Bank of Mexico, however, has opposed the integration of bitcoin into the nation’s financial system.
Another country in Latam looking into the potential benefits bitcoin could have for its economy is Mexico. A bill to change Mexico’s existing monetary law and make bitcoin legal tender was unveiled this week by senator Indira Kempis. The proposal, which aims to follow El Salvador’s lead in becoming the first nation in the world to accept bitcoin as legal tender, mentions how this could alter the financial literacy of many citizens.
The document bases its recommendation on the fact that Mexico is one of the continent’s least educated and financially inclusive nations. According to the proposal, 56% of the Mexican population still lacks access to a bank account, meaning that more than 67 million people still have no access to the most basic of financial instruments.
In the same vein, 68% of citizens don’t have access to financial education, which ostensibly renders most Mexicans unable to take educated decisions regarding savings, mortgages, or how to deal with credit.
The course of action taken by the government and the Central Bank of Mexico is in conflict with the legislation that Senator Kempis has proposed. The organization revealed in January that it was working to develop a digital peso, its own central bank digital currency (CBDC), and that it was anticipated to be in use by 2024 as a means of assisting Mexicans with their issues with financial inclusion.
Additionally, Mexico’s finance minister, Arturo Herrera, declared in June that using cryptocurrencies inside the country’s financial system was forbidden and that his position was unlikely to change in the near future. This measure was announced after Ricardo Salinas Pliego, one of the richest men in Mexico, reported he was working to make Banco Azteca the first bank to accept bitcoin in the country.